XS Supply Company is developing its annual financial statements at December 31. The statements are complete...
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XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Balance Sheet at December 31 Cash Accounts Receivable Merchandise Inventory Property and Equipment Less: Accumulated Depreciation Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings Income Statement (Current year) Sales Cost of Goods Sold Other Expenses Net Income Current Year Prior Year $ 43,495 $ 35,800 48,950 37,000 48,850 45,200 132,250 126,000 (38,150) (31,500) $235,395 $212,500 $ 47,100 $ 34,500 3,175 3,800 38,450 44,800 95,400 79,100 51,270 50,300 $235,395 $212,500 $121,000 70,180 49,850 $ 970 Additional Data: a. Bought equipment for cash, $6,250. b. Paid $6,350 on the long-term note payable. c. Issued new shares for $16,300 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $6,650; wages, $28,900; taxes, $6,700; other, $7,600. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities: Net increase in cash during the year Cash balance, January 1 Cash balance, December 31 0 0 0 $ 0 XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Balance Sheet at December 31 Cash Accounts Receivable Merchandise Inventory Property and Equipment Less: Accumulated Depreciation Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings Income Statement (Current year) Sales Cost of Goods Sold Other Expenses Net Income Current Year Prior Year $ 43,495 $ 35,800 48,950 37,000 48,850 45,200 132,250 126,000 (38,150) (31,500) $235,395 $212,500 $ 47,100 $ 34,500 3,175 3,800 38,450 44,800 95,400 79,100 51,270 50,300 $235,395 $212,500 $121,000 70,180 49,850 $ 970 Additional Data: a. Bought equipment for cash, $6,250. b. Paid $6,350 on the long-term note payable. c. Issued new shares for $16,300 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $6,650; wages, $28,900; taxes, $6,700; other, $7,600. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities: Net increase in cash during the year Cash balance, January 1 Cash balance, December 31 0 0 0 $ 0
Expert Answer:
Answer rating: 100% (QA)
To prepare the statement of cash flows for XS Supply Company we will use the indirect method We will start with the net income figure and adjust it fo... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
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